Irdai to meet insurers today on Bima Sugam, 'Cashless Everywhere'

Sources said the regulator is likely to discuss the appointment of a CEO for Bima Sugam

The Insurance Regulatory and Development Authority of India (Irdai) Chairman Debasish Panda will meet chief executive officers (CEOs) of the Indian insurance industry in Mumbai on Thursday to review implementation of two ambitious projects, Bima Sugam and ‘Cashless Everywhere’.

Industry sources said that Panda will discuss the implementation of the final phase of Bima Sugam, which is an online insurance marketplace for purchasing, selling, and servicing insurance policies and settling claims.

Formed under the Companies Act 2013, it is a part of the IRDAI’s Bima Trinity comprising Bima Vistaar, Bima Vahak and Bima Sugam.

Panda along with other senior officials of the Irdai, will meet CEOs in two separate sessions, said industry sources.

 

According to regulations, the shareholding of Bima Sugam will be widely held among all the life, general and health insurers with no single entity having a controlling stake. Sources said the regulator is likely to discuss the appointment of CEO for the company.

According to the norms, the company is also expected to have two nominees from the IRDAI on its Board, apart from the company’s own chairman and CEO, who will be appointed with the consultation of the Irdai.

The insurance regulator has set July 2024 as the deadline for the launch of Bima Sugam project, where the initial cost of capital was estimated to be ~200 crore. It has formed a steering committee for the creation of Bima Sugam.

IRDAI chairman is also expected to meet the leaders of the general insurance industry to discuss the developments in the health insurance space including review of ‘Cashless Everywhere’ initiative’s progress.

As per the initiative, policyholders can get treated in any hospital they choose, and a cashless facility for claim settlement will be available even if such a hospital is not in the network of a particular insurance company.

The initiative came into effect from February 1, 2024.

The industry is also likely to discuss the operationalisation of the master circular on health insurance. According to the circular, every insurer must strive to achieve 100 per cent cashless claim settlement in a time bound manner. The insurance companies have been asked to set up necessary systems and procedures for the same by July 31, 2024.